LOCAL authorities have tonight (Friday, October 26) announced a refinancing package that will see £68m of taxpayers money pumped into the region’s biggest airport.

Shareholders also selected a new partner for a 49 per cent shareholding in Newcastle International Airport.

Representatives of seven North-East local authoroties - Durham, Sunderland, South Tyneside, North Tyneside, Gateshead, Newcastle and Northumberland - which hold a 51 per cent stake in the airport, held a behind closed doors meeting to discuss the future of the airport.

Following a comprehensive selection process, global investment company AMP Capital was announced as the new partner.

The company has proven airport expertise through its involvement in Melbourne and Launceston Airports in Australia.

The majority 51 per cent shareholding will be retained by the seven North-East local authorities, collectively known as LA7.

The airport also announced the completion of its refinancing project. Financing is being provided by a new group of five banks – Royal Bank of Scotland, Royal Bank of Canada, Barclays Bank, HSH Nord Bank and National Australia Bank.

A statement released by the LA7 said the new bank facilities would significantly reduce the level of debt in the business and interest payments.

As part of the process, six of the LA7 (South Tyneside, Newcastle, Sunderland, Gateshead, Northumberland and Durham) will make a further investment totalling £68m.

Councillor Iain Malcolm, leader of South Tyneside Council and chairman of LA7, said: “AMP Capital submitted an exceptional proposal and its involvement in running Melbourne and Launceston Airports in Australia will bring valuable airport experience.

“We’re delighted to have them on board and look forward to working with them to maximise the potential of the airport.

“The completion of the refinancing is also great news for the region. The airport is a major asset to the North-East, generating millions of pounds for the local economy every year and supporting thousands of jobs.

“As a result we viewed the further investment by the local authorities as the right thing to do, not just for the airport, but for the whole region.”

Boe Pahari, Managing Director for Europe, Head of Infrastructure, AMP Capital added: “The airport already has the necessary infrastructure for further developing its commercial business and for meeting future demand for traffic growth.

“We look forward to working with the LA7 and Newcastle Airport management to add value and support the long-term growth and development of the Airport and the North-East UK economy.”